Reviewing major issues such as the implementation of FTA and CBAM

The Korea-EU FTA marks its 12th anniversary this year and has served as a key axis of trade and investment between the two sides despite economic uncertainties such as COVID-19 and global inflation. In particular, the EU is Korea's top three trade target. The trade volume between the two sides reached $136.3 billion, the largest ever, marking the increase in petroleum products and intermediate goods exports.

Each year, the two sides evaluate the implementation of the FTA and check the difficulties of trade and investment through the Korea-EU FTA Commodity Trade Commission. This year, the Commodity Trade Commission intensively discussed policies and bills that the two countries are introducing and discussing for the carbon-neutral industry.

In particular, Korea emphasized that the battery law, the Critical Raw Materials Act (CRMA), and the carbon-neutral industry law promoted by the EU should not be an excessive burden on companies and should be applied non-discriminately to companies inside and outside the country. In addition, detailed laws for the implementation of the Carbon Border Adjustment Mechanism (CBAM), which took effect on May 27 this year, were enacted as soon as possible to minimize uncertainties among companies and to fully recognize carbon prices paid by exporting countries in Korea.

On the other hand, the EU's interest in reforming Korea's electric vehicle subsidies and promoting laws and systems related to offshore wind power was fully explained to enhance mutual understanding. In addition, Korea inquired about other concerns on their side, such as the EU's regulations on the use of bioplastics and regulations on offshore subsidies, to continue consultations.

The two sides also decided to check the overall implementation of the FTA through the Korea-EU FTA Trade Commission in the second half of the year and discuss ways to expand economic cooperation.